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China has provided half of the world's carbon credits under the Kyoto Protocol after developing 279 foreign-invested carbon reduction projects, the National Development and Reform Commission (NDRC) announced on Monday.

These projects involved total investment of nine billion U.S. dollars, said Xie Zhenhua, vice chairman of the NDRC.

As a developing country, China is not obligated to meet targets set by the Kyoto Protocol, but under the clean development mechanism (CDM) it can provide so-called carbon credits to developed countries if they invest in projects that help reduce carbon emissions in China.

A carbon credit is given for the reduction of every ton of carbon that prevented from being emitted into the atmosphere.

The CDM allows developed countries to fulfill their emission reduction obligations at much lower cost by investing in clean energy projects in developing countries.

The projects include upgrading equipment in factories or converting coal burning factories to alternate energy sources.

Xie said the Chinese government would step up industrial restructuring and tighten controls on energy consumption this year.

At the conclusion of China's annual Parliamentary session this month, Premier Wen Jiabao pledged the government would honor its international responsibilities and reduce the country's greenhouse gas emissions.

The government had set a target to reduce energy consumption per unit of GDP by 20 percent from 2006 to 2010, Wen said.

(Xinhua News Agency March 27, 2007)